Can Dogecoin rise back up? Why is everyone focusing on the $0.21 level? Today, I'll explain it clearly in simple terms.

Recently, Dogecoin (DOGE) has been underperforming, having fallen from the high point in mid-May, even breaking below the low of May, which has left many shaking their heads. However, there are actually some noteworthy signals hidden in this.

Why is $0.21 so critical?

This price level is simply the 'watershed between bulls and bears.' If Dogecoin can rise above $0.21 and hold, then the trend could completely reverse and strengthen. Otherwise, it will need to consolidate at the bottom for a while.

What does on-chain data tell us?

In the past two weeks, a metric called 'net flow from exchanges' has been negative, indicating that more Dogecoin has been transferred out of exchanges into cold wallets, which usually means someone is quietly accumulating coins. This phenomenon often occurs in the late stages of a bear market, suggesting that the market is building up some strength.

But don't celebrate too early, as there is also a metric called 'coin days destroyed (CDD)' which has surged in the last two instances, indicating that old coins have suddenly been activated, and some may be sold, meaning the market is still somewhat unstable.

There is a place where it's easy to get trapped.

Currently between $0.182 and $0.211, there are several 'supply zones'—many people bought in this area, and once the price rebounds to this zone, they may rush to sell to 'break even.' This could actually suppress Dogecoin's rise.

Summary

Dogecoin has indeed broken below the previous low, which is not optimistic.

However, with outflows from exchanges and an increase in cold wallets, it shows that someone is quietly buying.

To truly strengthen, it must break through and hold above $0.21.

Before this, there is still a tug-of-war between bulls and bears, and short-term operations should be cautious.

I am a senior cryptocurrency analyst, interpreting the market logic of mainstream coins every day. Feel free to follow me for more insightful analysis and trading strategies!#加密市场反弹